50.1K

Verified Solution

Link Copied!

Personal taxes
Salary	$104,000.00		Tax Table for Single Individuals:
Dividend Income	$12,000.00		Taxable Income	Amount Paid on Base	Percentage on Excess over Base
Interest Income	$5,600.00		$0.00	$0.00	10.00%
LT Stock Sale	$22,500.00		$9,225.00	$922.50	15.00%
LT Stock Cost	$5,700.00		$37,450.00	$5,156.25	25.00%
ST Stock Sale	$12,000.00		$90,750.00	$18,481.25	28.00%
ST Stock Cost	$5,100.00		$189,750.00	$46,075.25	33.00%
Personal Exemption	$4,000.00		$411,500.00	$119,401.25	35.00%
Itemized Deductions	$7,500.00		$413,200.00	$119,996.25	39.60%
Apllicable Tax Rate on Dividends & LT Capital Gains	15.00%
a. Calculation of Federal Tax Liability
Calculation of Taxable Income:			Formulas
Salary			#N/A
Interest Income			#N/A
ST Capital Gains			#N/A
Income before Exemption and Deductions			#N/A
Personal Exemption			#N/A
Itemized Deductions			#N/A
Taxable Income before Dividends & LT Capital Gains			#N/A
Taxes on Taxable Income Before Dividends & LT Capital Gains:
Tax Liability on Base of Bracket			#N/A
Tax Liability on Excess over Base			#N/A
Tax on Taxable Income before Dividends & LT Capital Gains			#N/A
Taxes on Dividends & LT Capital Gains:
Dividend Income			#N/A
LT Capital Gains Income			#N/A
Total Dividend & LT Capital Gains Income			#N/A
Tax on Dividends & LT Capital Gains Income			#N/A
Total Federal Tax Liability			#N/A
b. Calculation of Marginal Tax Rate
Marginal Tax Rate			#N/A
c. Calculation of Average Tax Rate
Average Tax Rate			#N/A

Excel Online Structured Activity: Personal taxes Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information: - She received $104,000 in salary. - She recelved $12,000 of dividend income. - She received $5,600 of interest income on Home Depot bonds. - She received $22,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $5,700. - She received $12,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $5,100. - Mary receives one exemption ($4,000), and she has allowable itemized deductions of $7,500. These amounts will be deducted from her gross income to determine her taxable income. Assume that her tax rates are based on Table 3.5. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet a. What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations. $ b. What is her marginal tax rate? Round your answer to 1 decimal place. % c. What is her average tax rate? Round your answer to 2 decimal places. % Table 3.52015 Individual Tax Rates Single Individuals Married Couples Filing Joint Returns

Answer & Explanation Solved by verified expert

See Answer